Social Entrepreneurship in the Modern Economy

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Social Entrepreneurship in the Modern Economy B&T11413_ERIM_Omslag Hoogendoorn_18juli11 SOCIAL ENTREPRENEURSHIP IN THE MODERN ECONOMY 246 BRIGITTE HOOGENDOORN WARM GLOW, COLD FEET This study tests and extends current knowledge on the causes of social entre pre neur - ship: a type of entrepreneurship that concerns the process of discovering, evaluating, and pursuing opportunities aimed at the creation of social value. In contrast to what is common Social Entrepreneurship in this research domain, this study applies a research design based on unique, large-scale BRIGITTE HOOGENDOORN in the Modern Economy - Social Entrepreneurship and internationally comparable survey data. The chapters in this book address various in the Modern Economy research themes such as the occurrence and drivers of social entrepreneurship at the macro-level, factors that influence the survival of social ventures at the firm level, and the differences and commonalities between social and commercial entrepreneurs at the Warm Glow, Cold Feet individual level. At the macro-level it is concluded that social entrepreneurship clearly is a global phenomenon with a prevailing role for the level of income in a country as one of the drivers of its occurrence. At the micro-level results indicate a deviating entrepreneurial profile for social entrepreneurs that tends to be, in some respects, less favorable compared to commercial entrepreneurs in terms of effort put into the organisation, self-confidence, ambition, funding and progression to more mature stages of the entrepreneurial process. The results of this thesis are of particular interest for public policy-makers, private foundations, and support organizations who want to promote social entrepreneurship and improve the sector infrastructure. This study advocates taking account for this deviating entrepreneurial profile. Design & layout: B&T Ontwerp en advies (www.b-en-t.nl) Print: Haveka (www.haveka.nl) Design & layout: B&T Ontwerp en advies (www.b-en-t.nl) The Erasmus Research Institute of Management (ERIM) is the Research School (Onder - zoek school) in the field of management of the Erasmus University Rotterdam. The founding participants of ERIM are the Rotterdam School of Management (RSM), and the Erasmus School of Economics (ESE). ERIM was founded in1999 and is officially accre dited by the Royal Netherlands Academy of Arts and Sciences (KNAW). The research under taken by ERIM is focused on the management of the firm in its environment, its intra- and interfirm relations, and its busi ness processes in their interdependent connections. The objective of ERIM is to carry out first rate research in management, and to offer an ad vanced doctoral pro gramme inResearch in Management. Within ERIM, over three hundred senior researchers and PhD candidates are active in the different research pro- grammes. From a variety of academic backgrounds and expertises, the ERIM community is united in striving for excellence and working at the forefront of creating new business knowledge. Erasmus Research Institute of ManagementErasmus Research - ERIM PhD Series Research in Management Erasmus Research Institute of Management - Tel. +31 10 408 11 82 Rotterdam School of Management (RSM) Fax +31 10 408 96 40 ERIM Erasmus School of Economics (ESE) E-mail [email protected] Erasmus University Rotterdam (EUR) Internet www.erim.eur.nl P.O. Box 1738, 3000 DR Rotterdam, The Netherlands Social Entrepreneurship in the Modern Economy Warm Glow, Cold Feet Social Entrepreneurship in the Modern Economy Warm Glow, Cold Feet Sociaal Ondernemerschap in de Hedendaagse Economie Warm Glow, Cold Feet Thesis to obtain the degree of Doctor from the Erasmus University Rotterdam by command of the rector magnificus Prof.dr. H.G. Schmidt and in accordance with the Doctorate Board. The public defence shall be held on Thursday 6 October 2011 at 15.30 hrs. by Brigitte Hoogendoorn born in Waddinxveen Doctoral Committee Promotors: Prof.dr. H.P.G. Pennings Prof.dr. A.R. Thurik Other members: Prof.dr. H.R. Commandeur Prof.dr. J.J.P. Jansen Prof.dr. F. Janssen Erasmus Research Institute of Management – ERIM The joint research institute of the Rotterdam School of Management (RSM) and the Erasmus School of Economics (ESE) at the Erasmus University Rotterdam Internet: http://www.erim.eur.nl ERIM Electronic Series Portal: http://hdl.handle.net/1765/1 ERIM PhD Series in Research in Management, 246 ERIM reference number: EPS-2011 246 STR ISBN 978-90-5892-289-2 © 2011, B. Hoogendoorn Design: B&T Ontwerp en advies www.b-en-t.nl This publication (cover and interior) is printed by haveka.nl on recycled paper, Revive®. The ink used is produced from renewable resources and alcohol free fountain solution. Certifications for the paper and the printing production process: Recycle, EU Flower, FSC, ISO14001. More info: http://www.haveka.nl/greening All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author. Table of content Preface (voorwoord) 1. Introduction and conclusion 1 1.1 Introduction 2 1.2 Research context 3 1.3 Related fields 6 1.4 Defining concepts 12 1.5 Research objective, framing and individual chapters 14 1.6 Data 22 1.7 Conclusion and implications 23 1.8 Discussion 27 2. What do we know about social entrepreneurship? 31 An analysis of empirical research 2.1 Introduction 32 2.2 Social entrepreneurship explained 34 2.3 Research on social entrepreneurship 42 2.4 What we know about research on social entrepreneurship 45 2.5 Discussion and implications for future research 60 2.6 Conclusions 65 Appendix 67 3. Prevalence and determinants of social entrepreneurship at the 71 macro-level 3.1 Introduction 72 3.2 Background 74 3.3 Hypotheses formulation 78 3.4 Data 83 3.5 Methodology and results 89 3.6 Discussion of results 94 3.7 Conclusions 98 Appendix 100 4. Social and commercial entrepreneurship: Exploring individual and 105 organizational differences 4.1 Introduction 106 4.2 Theoretical background 108 4.3 Data and methodology 111 4.4 Results 113 4.5 Discussion, research opportunities and limitations 140 4.6 Conclusion 145 Appendix 147 5. Social entrepreneurship and performance: The role of perceived 149 barriers and risk 5.1 Introduction 150 5.2 Literature background 152 5.3 Defining social entrepreneurship 155 5.4 Formulation of hypotheses 156 5.5 Data 160 5.6 Methodology and results 163 5.7 Conclusion and discussion 169 Thesis in short 177 References 181 About the author 205 ERIM Ph.D Series 207 Preface (voorwoord) | Preface Het mooie moment waar ik bij voorbaat zo naar uit keek is gekomen. Een moment om terug te blikken en te reflecteren op een proces dat bijna ten einde is: het schrijven van mijn proefschrift. Ik had me voorgesteld dat ik dit op een idyllisch terras in de zon zou doen onder het genot van een goede cappuccino. Het is toch de keukentafel geworden. In een interview in Manager & Literatuur net voor mijn overstap naar de Erasmus School of Economics gaf ik aan dat ik enigszins bezorgd was om na een paar jaar ploeteren op een kamertje door iemand onder het stof vandaan gehaald te worden met als resultaat een stapeltje papier dat door niemand gelezen zou worden. Er valt veel te vertellen over mijn eerste jaren als medewerker van deze school maar een stoffige boel was het zeker niet. Vooral in het begin moest ik erg wennen maar langzamerhand snapte ik dat je een artikel voor een gerenommeerd Journal niet in drie maanden schrijft, yoga als activiteit voor een uitje met de capaciteitsgroep niet door iedereen gewaardeerd wordt en dat je feedback op je werk zelf moet organiseren. Zelfs de zoektocht naar data heeft uiteindelijk het gewenste resultaat opgeleverd en heb ik het frustrerende gevoel niet productief te zijn geaccepteerd. Het was een zeer intensieve periode waarin ik op meerdere vlakken mijn grenzen heb verkend en verlegd. Daar ben ik trots op en dat smaakt naar meer. Als ik terugkijk op de afgelopen drie jaar waarin ik mocht werken aan dit proefschrift dan voel ik me bovenal een bevoorrecht persoon. Allereerst voel ik me een bevoorrecht persoon omdat de faculteit, verpersoonlijkt door Philip Hans Franses en Saskia Krijger, het voor mij mogelijk hebben gemaakt om de overstap van het bedrijfsleven naar de universiteit te maken. Met deze stap heb ik gevonden waar ik naar op zoek was: diepgang, intellectuele uitdaging en focus. Ik voel me een bevoorrecht persoon omdat ik met bijzondere mensen mag samenwerken. Dit geldt in eerste instantie voor Roy Thurik en Enrico Pennings die het hebben aangedurfd om een niet-prototypische promovendus te begeleiden. Hoewel de eerste periode vooral gekenmerkt werd door wederzijds verkennen, heb ik in het laatste jaar een groeiend vertrou- wen ervaren. Hiervoor en voor het tot een goed einde brengen van dit proefschrift, ben ik jullie zeer dankbaar. Daarnaast heb ik het genoegen om met collega’s te mogen samenwerken die me uitdagen, aan het lachen maken, me ondersteunen, me verbazen, met wie ik ideeën kan uitwisselen en die me verrassen. Geert-Jan de Vries, Gerda de Rave, Haibo Zhou, Ingrid Verheul, Joern Block, Jolanda Hessels, Katrin Burmeister, Niels Rietveld, Nita Ramsaransing, Matthijs van der Loos, Philipp Koellinger, Peter van der Zwan, Ramona Ligthart en Tim Lamballais Tessensohn, bedankt voor de vele etentjes, hilarische gesprekken, serieuze gedachten uitwisselingen en hulp. In het bijzonder wil ik Peter van der Zwan bedanken voor zijn gave om zijn dagelijkse gebeurtenissen en nieuwsfeitjes op te blazen tot ware avonturen gebruikmakend van soms wat ondergewaardeerde Nederlandse vocabulaire. Hopelijk volgen er nog vele gesprekken en gezamenlijke projecten. Naast deze ondernemerschap collega’s wil Preface | ik ook alle Mature Talents bedanken voor de open hartige gesprekken aan onze stamtafel in Siena.
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